Credit Card Processing Insiderhttps://www.cardfellow.com
Compare Credit Card Processing CompaniesThu, 08 Dec 2016 21:47:11 +0000en-UShourly1https://wordpress.org/?v=4.6.1Taking Fleet Cards – Wex, Voyager, and Morehttps://www.cardfellow.com/taking-fleet-cards-wex-voyager/
https://www.cardfellow.com/taking-fleet-cards-wex-voyager/#respondThu, 08 Dec 2016 21:45:11 +0000https://www.cardfellow.com/?p=8337Fleet cards go by a few different names. You may hear them called fuel cards, fleet cards, or a fleet-specific brand name, like Wright Express (Wex) or Voyager. They’re all the same thing – a card used to purchase gasoline or diesel, as well as pay for tires, oil changes, car washes, or repairs on vehicles in a fleet. However, they all have different requirements and costs for acceptance.

As a gas station, tire center, repair shop, or other business owner with fleet customers, taking fleet cards is necessary, but so is making sure that you aren’t overpaying to process them. If you’re not familiar with Level 3 processing and enhanced data, you’re leaving money on the table every time you take a qualifying card.

Differences Between Fleet Cards and Commercial Credit Cards

Fleet cards differ from commercial credit cards in a few ways. On your side, as the business accepting a fleet card for services or products, the main difference to be aware of is that purchase options are limited. While cards will allow the user to purchase fuel, some cards offer the fleet owner the ability to limit transactions to specific types of fuel – for example, the card may only allow purchasing diesel, or cap the amounts. Some cards can be set to require the employee to enter mileage at the time of purchase.

Other purchases on a fleet card can be limited as well, restricted by amount, the number of transactions, days of the week, or even time of day that the card can be used.

Furthermore, fleet cards may or may not be affiliated with the credit card brands, which affects everything from the costs to accept them to the equipment that’s compatible with the cards.

On the customer side, fleet cards may provide a discount on gas and services or other rewards, and offer detailed reporting (some in real-time) so that owners or managers can track expenses easily and don’t need to rely on receipts turned in from employees. Reporting often shows purchases by driver or by vehicle in addition to showing the basics like total transactions, amounts, and more. This information is captured at the time of the sale.

Types of Fleet Cards

To make things a little more confusing, there are multiple types of fleet cards: universal, store branded, and fleet branded. While the term “fleet cards” is often used to refer to Wex and Voyager, Visa and Mastercard also offer fleet cards, as do specific brands.

Universal (Credit Card Branded or Co-Branded)

Fleet cards that bear the Visa or Mastercard logo can be used at any location where Visa or Mastercard are accepted.

This even applies to co-branded cards. For example, a BP Business Solutions Fuel Mastercard can be used at BP locations or at locations where Mastercard is accepted. By contrast, a BP fuel card that doesn’t bear the Mastercard logo is considered store branded and can only be used at BP locations.

Although co-branded cards can be used anywhere that credit cards are accepted, the secondary brand may offer discounts or other rewards to encourage customers to use the card at its locations. For example, BP may offer rewards on its Business Solutions Fuel Mastercard if the card is used at a BP station, but not offer the rewards if it’s used at a non-BP location.

Store Branded

Store branded cards that don’t have a credit card company partnership are only usable at the locations associated with the brand. For example, a Texaco fleet card can be used at Texaco locations. Store branded fleet cards are usually associated with large chains, such as Chevron and BP.

Fleet Branded

Wright Express (Wex) and Voyager are fleet-specific branded cards, meaning that they bear their own brand name. They aren’t as limited as store-branded cards, but aren’t as universal as fleet cards that are associated with Visa or Mastercard. Wright Express is backed by its own bank, while Voyager partners with US Bank.

Wex and Voyager can be used at any participating business, but both require extra set up beyond your regular credit card processing.

Benefits of Accepting Fleet Cards

As with most things in business, if you make it easier for customers, you’ll see more sales. Taking fleet cards can open up your business to a huge number of potential customers, ranging from local taxi drivers to long-haul truckers. Both private businesses and the government use fleet cards.

Costs to Take Fleet Cards

Now the meat of the matter – what it’s going to cost? Unfortunately, there’s no single answer to that question, as the total costs will vary depending on a number of factors. However, you can get an idea of the costs, depending on which type of fleet card you’re taking.

Costs to Accept Wex or Voyager

As fleet branded cards that are not associated with Visa or Mastercard, Wex and Voyager are not subject to the interchange tables used as the basis for Visa and Mastercard fees. Instead, you’ll be charged a percentage and may be assessed additional costs by your processor.

Wex and Voyager rates and fees start at around 3.25%, so they aren’t cheap to process. You’ll want to find a company that will charge you as close to cost as possible.

Costs to Accept Visa or Mastercard Fleet Cards

Fleet cards with the Visa or Mastercard logo are charged similarly to other cards, following the card brands’ interchange tables. The total cost will depend on your processor, the amount per transaction and number of transactions you take by credit card, what type of fleet card you’re taking, and more.

However, you can get an idea of the interchange rates you can expect to pay. The interchange rates can be thought of as the wholesale cost – they’re the minimum that a processor has to charge you just to break even on your account. But in some cases, like with universal fleet cards, there are ways to lower your cost at wholesale.

Visa’s interchange table has a footnote in the commercial cards section stating that purchasing cards include fleet cards. The interchange rates range from 1.85% + 10 cents per transaction to 2.95% + 10 cents per transaction, as seen in the screenshot below.

While Mastercard’s public interchange table makes no mention of fleet cards, tables that aren’t publicly available and our own experience with the charges both show that Mastercard prices fleet cards according to commercial card rates as well.

We see from Visa’s table that if you take a fleet card, it will be charged according to purchasing card rates. But within the category of purchasing cards are several different possible rates. Given the range of pricing there, it’s important to know how to qualify for the lowest rates on as many of your transactions as possible. That’s where Level 3 enhanced data comes in.

Level 3 Data

Fleet cards are a common business-to-business (B2B) transaction, and you’ve probably been told that they’re expensive to process. However, there are steps you can take to qualify for lower pricing, even on universal fleet cards. What you’ll need to do is work with your processor to provide Level 3 enhanced data when you take a fleet card at your business.

As you can see in the Visa screenshot above, the category “Commercial Level III” lists a rate of 1.85% + 10 cents per transaction. That means that if you accept a fleet card that qualifies for “Commercial Level III” you’ll pay 1.85% + 10 cents at the wholesale level. Since that’s the lowest rate of the purchasing card categories, that’s the goal.

Achieving “Commercial Level III” is possible when you comply with requirements for that level, which includes providing more information about the fleet card transaction than with a typical consumer transaction. Level 3 data may include odometer readings, vehicle or driver ID numbers, and more. Level 3 data is also important for government purchases, as tax-exempt numbers and other details can be captured. Fleet card transactions will also need to include the data from Level 2, such as fuel grade, cost per gallon, sales tax, and other details.

It sounds like a lot of work, but it can be a quick process if you get set up correctly with a payment processor familiar with enhanced data, and use the right equipment.

Providing Level 3 Data: Equipment for Fleet Cards

Fleet cards require using equipment that can support enhanced data. For accepting Wex and Voyager, your payment processor will need to install a specific application on your terminal. As of December 2016, the primary terminals that support Wex and Voyager are:

The two FD machines will only work on First Data platforms, meaning you’ll need a merchant account with either First Data or one of its resellers. The Verifone machine is universal, and can be used with many different processors.

Pay at the Pump

Most pay-at-the-pump systems only work on what’s called the BuyPass platform, in the First Data network. Specialized gas station systems are certified for use with BuyPass, including Verifone’s Ruby line and Gilbarco Passport. Implementing pay-at-the-pump technology for a new gas station or transferring services when purchasing an existing gas station requires assessing your individual needs, and working with a processor that can support pay-at-the-pump. If you need more information, you can input your business info here and contact us for assistance.

Finding a Payment Processor for Fleet Card Acceptance

Fortunately, many processors can get you set up to accept Voyager and Wex cards or the general Mastercard and Visa fleet cards. In the case of Wex and Voyager, the key is to find a processor that charges you as close to cost as possible.

For Mastercard and Visa, work with a processor who can help you qualify for Level 3 enhanced data rates so that you can actually lower the cost at the wholesale level. That means finding a processor who is familiar with B2B transactions.

You can do it yourself by researching processors, calling for quotes, and constantly monitoring your monthly statements, or you can use a credit card processor comparison service like CardFellow to get instant quotes and free statement monitoring.

Funding Time for Fleet Cards

When you take fleet cards, the funding time depends on the type of card and the processor. Visa and Mastercard fleet payments will follow the same funding schedule as other payments, but Wex and Voyager may or may not be included with your credit card branded deposits. Funding time for Wex and Voyager depends on full acquiring status, and can be discussed with your processor.

Conclusion

There are two options when it comes to taking fleet cards – you could choose to only accept Mastercard and Visa fleet cards and work with your processor to secure lower costs by providing all the required Level 3 enhanced data, or you can expand payment options to include Voyager and Wex acceptance.

Since Voyager and Wex are not affiliated with the major credit card companies, you’ll need to set up special applications within compatible equipment. You should expect higher fees to take the cards, since the base costs that your processor has to pay are higher than they are for Visa and Mastercard fleet cards. However, if your customers seek out Wex or Voyager-accepting businesses, the higher costs could be well worth it to help you secure additional business.

]]>https://www.cardfellow.com/taking-fleet-cards-wex-voyager/feed/0Clover Insights for Business Analyticshttps://www.cardfellow.com/clover-insights/
https://www.cardfellow.com/clover-insights/#respondWed, 30 Nov 2016 22:11:25 +0000https://www.cardfellow.com/?p=8313Clover Insights is a business analytics app available from First Data – one of the largest credit card processors, handling nearly half of all US credit and debit transactions. The company also processes Apple Pay and gift card transactions for major brands like Starbucks.

In 2014, First Data launched Insightics, an online reporting platform that offers real-time tracking of internal sales data and metrics, along with insights on local businesses. To streamline branding, Insightics was renamed Clover Insights alongside its most recent update.

We looked at the program to find out what it offers and what businesses may benefit from it.

Clover POS Integration

Clover Insights is integrated into the Clover Station POS platform, an all-in-one, cloud-based POS system that includes the tablet, station, receipt printer, and cash drawer. It’s both EMV and PIN capable and has Apple Pay integrated.

First Data also offers the Clover Mini and Mobile terminals, which allow you to accept card and digital payments on your legacy cash register.

Each Clover POS includes a proprietary app marketplace that allows business owners to personalize the POS and reporting. Clover insights is integrated into the platform and automatically imports the necessary information, syncing well with the variety of applications available in the Clover App Market.

However, Clover POS hardware isn’t necessary to utilize Clover Insights, as it’s available for download from the iOS App Store and is accessible through the Clover Go mobile payment app in the Android Play Store that works with the Clover Go contactless, chip, and swipe mobile card reader.

Supported Platforms

Although the Clover POS platform and marketplace makes it easier to access real-time data, it can also be imported from other POS systems and merchant services. Big banks like SunTrust, Citi, PNC, and Bank of America merchant services utilize Clover Insights as do Ignite Payments, Velocity Merchant Services and other companies that run on the First Data platform.

First Data is constantly working to add more partners, and it’s important to know there are separate marketplaces for the U.S. and U.K. This means some partnerships may be exclusive to one country.

Regardless of the platform, Clover Insights uses First Data’s TransArmor encryption and tokenization technology to keep all sensitive data secure while in transit between your devices and the company’s cloud networks.

Key Features

The most prominent feature of Clover Insights is the ability to access reporting through a variety of devices. These reports include daily revenue, transaction reporting, customer history, busiest hours, and more. For these reports to function correctly, data must be synced correctly from your current POS system, which can be tricky if you’re not using Clover’s proprietary platform.

Although real-time reporting through Clover’s platform translates well to Clover Insights, some customers have reported delays of up to 24 hours in accessing some data. Be aware that although installation is quick, it may take some time to set things up correctly.

Because Clover Insights is utilized by so many businesses and financial institutions, it also allows you to see general transactional, spending, and revenue reports for nearby businesses through the iOS app. This data is often delayed by up to several days but is historical, so you can see how your business compares to others over time.

Small- and medium-sized businesses don’t always have access to the data and analytics necessary to forecast foot traffic, sales, and revenue. First Data has made this type of data available to major brands for years and is hoping Clover Insights will provide the same powerful resources to smaller companies.

In addition to simple bar and line graphs, Clover Insights can also display a heat map that lets you see revenues and foot traffic around the city to see if other businesses are performing similarly. Using this data marketing efforts can be tied to sales, you can collaborate or compete more efficiently with other businesses, fraud patterns can be detected, and more.

It’s also possible to check industry trends in other cities. Instead of comparing your jewelry shop to the ice cream parlor next door, you can find out how it compares to jewelry shops in every city and town across the country.

More details on how to use Clover Insights for competitor analysis are available here.

Conclusion

Although First Data rebranded its Insightics program to Clover Insights, it retains its core functionality as a data collection, analytics, and reporting system for retail businesses. Clover insights works much better when integrated into Clover’s full POS platform, but it’s also compatible with a variety of partner merchant banks and payment processors.

Unfortunately, Android isn’t one of those partners yet, so you may have difficulty using it without an iPhone or iPad. You can access Clover’s mobile website, but it’s not very convenient on a mobile device. It also has delays in receiving data from other POS platforms and troubleshooting can get tricky.

Overall, Clover Insights is a useful program with basic internal and competition reporting that makes it helpful for small and medium businesses looking to quantify their business efforts. It does have its flaws, however, including lack of customizable reporting and data sync issues. Be aware of this before integrating it into your business.

Do you use Clover Insights? Let us know your thoughts in the comments!

_____Brian Penny is a former Business Analyst and Operations Manager at Bank of America turned freelance writer focused on business and technology. His work appears in Huffington Post, Fast Company, and The Street.

]]>https://www.cardfellow.com/clover-insights/feed/0Direct Credit Card Processing: Is It Better?https://www.cardfellow.com/direct-credit-card-processing/
https://www.cardfellow.com/direct-credit-card-processing/#respondTue, 29 Nov 2016 20:27:41 +0000https://www.cardfellow.com/?p=8308A misleading diagram is becoming more popular on payment provider websites. It’s a “direct credit card processing” or “wholesale credit card processing” diagram, which shows two different options for securing a credit card processing solution. One option is through their company: a simple path where they connect you right to the card brands, often called direct processing. The other option is the more complicated route they say you can expect with their competitors: a multi-step process cluttered with middlemen.

It looks something like this:

The path that shows a shorter, more direct route from you to the credit card companies implies that the company offers a simpler, direct credit card processing choice, often hinting that you can save money since their company connects you directly to the credit card brands. Looking at the diagram, it’s easy to think that you’d want to choose the company with fewer “middlemen” because direct processing must be better.

The problem is, these diagrams aren’t accurate.

Let’s take a look at the “extra” steps on the more complex path and get to the bottom of the “direct credit card processing” diagrams.

The “Sales Reps” Step

The first “extra” step is for what the diagrams call “middlemen” or “sales reps.” These are the people who set you up with credit card processing for your business. How is that different than getting set up with a representative at the company on the simpler path? Good question. It’s not.

When you sign up for credit card processing with the company who posts the diagram, you’ll still work with a sales rep or account rep who will provide paperwork for your account and help you with the setup process. Refusing to label that as “sales reps” makes it look like another step for the more complicated path.

For all intents and purposes, we could relabel “sales rep” on the complicated path with the name of a competitor, or simply add “sales reps” to the bottom path. In either case, you’re working with the company to enable your business to accept credit cards.

Furthermore, the card brands (with the exception of American Express) don’t set up processing accounts for individual businesses. They have relationships with acquiring banks. There’s no “cutting out the credit card processing middlemen” to go direct to the card brands, because the card brands don’t do what the “middlemen” do.

The “Processors” Step

Most of the companies that post these kinds of diagrams are called independent sales organizations (ISOs.) They are not processors themselves. All ISOs resell the processing services of a larger “backend” processor. Essentially, an ISO and a processor go hand in hand.

It’s possible to work directly with a backend processor and not go through an ISO, but it’s not possible to work with an ISO and skip backend processors. If you sign up for credit card processing through an ISO, there is a backend processor involved, even if you personally don’t speak to them or even know which one it is.

No ISO can claim it eliminates a processor from the steps, because the ISO handles your credit card transaction through its backend processor partner.

There are several backend processors, such as:

Elavon

First Data

Global Payments / Heartland Payment Systems

TSYS / TransFirst

Vantiv / NPC

Worldpay

These companies would be able to claim that there’s no other processor involved in your transaction. So if a “direct processor diagram” isn’t posted by a company such as Elavon, First Data, Global/Heartland, TSYS/TransFirst, Vantiv/NPC, or Worldpay (with their name or logo in the bottom path) excluding the “processor” step is more marketing than fact.

But, interestingly enough, none of those companies use the “direct processor” diagram.

The diagram is always posted by ISOs, or companies that partner with processors to handle your credit card transactions. As mentioned above, ISOs do not go “direct to credit card companies” and they always have at least one backend processor that they work with. That means we have to add the “processor” step to the bottom path.

So in reality, the diagram should look more like this:

The “direct credit card processor” diagram starts to look a little redundant. That’s because many ISO can and do use the same few backend processors. Companies that post this diagram are using it as a marketing tactic to differentiate themselves from the competition.

Credit card processing is a very competitive industry. Companies try many different tactics to distinguish themselves, and this one appeals to some business owners.

ISOs vs. Backend Processors

I mentioned earlier that there are several backend processors, and that it’s possible to get credit card processing directly from them, without using an ISO. You may be wondering if there’s any benefit to that, correctly thinking that backend processors would be the less complicated path in the diagram, since they handle both sales and backend processing themselves.

The answer is, it depends. There are times when going directly to a processor can be beneficial, but ISOs can often provide the same or better pricing, and may even offer better customer service since they’re usually much smaller companies.

The easiest way to decide what you need is to compare directly. You can use CardFellow to see pricing from direct, backend processors and from ISOs. You can even invite more companies to place quotes for easy comparisons. It’s free, private, and no obligation. Give it a try.

How do I find out if a company is an ISO?

All registered ISOs are required to post a disclosure on their website stating with which acquiring bank(s) they’re registered. Scroll to the very bottom of the company’s website and look for wording like “Company X, LLC is a registered ISO of Wells Fargo Bank.”

Companies that don’t include an ISO disclosure are not registered with the credit card brands and may not be your best bet for processing.

The Bottom Line

The bottom line is that any payment provider (whether an ISO or one of the backend processors) has the potential to be the “best” solution for your business. But it isn’t because of direct connections to credit card brands or elimination of sales reps. Rather, the “best” solution for you will be the one that’s the right mix of low cost, good service, and compatibility with the systems you want to use.

Take advantage of CardFellow’s free comparison tools to find the best credit card processing solution for your business.

The National Federation of Independent Businesses (NFIB) is an advocacy group for American independent businesses. It has a buying group component, but initiatives to promote and encourage business is definitely at its core, even evidenced in its tagline, “Protecting the Future of Small Business.”

Sections of its website are dedicated to news, including updates on government policies and acts related to business. It also provides articles on a range of topics of interest to business, including marketing, holiday trends, taxes, and more. A “resources” section lets you search for helpful info by topic, such as accounting, IT, legal issues, and more.

The group also keeps a list of voting records for congress, allowing businesses to see how their government representatives voted on issues that matter to businesses.

NFIB has an introduction video, below:

Founded in 1943, the NFIB has grown to 325,000 members. From its inception until 1992, the NFIB was headquartered in San Mateo, CA. In 1992, the NFIB moved its offices to Nashville, TN.

How does this group work?

The NFIB has a purchasing group for members. There are four categories of services and products members can purchase: commercial insurance, personal insurance, financial products and services, and business products and services. Aside from what’s on the website, there’s no information available online as to how the purchasing group works.

What is its focus?

Overall, the NFIB’s goal is to advocate for the needs of small businesses federally and at a state level. It does provide resources to businesses, though, including money-saving partnerships with major players.

How does the purchasing process work?

Members of the NFIB can browse deals and purchase the ones that are most relevant to them online. They can view their transaction history on the NFIB’s site. Other than that, there’s no other information about the purchasing process on the site.

How does the group choose vendors?

Vendors can apply online to share their deals with NFIB members. However, there’s no information available online about the criteria the NFIB has for vendors.

Current Vendors

The NFIB lists quite a few well-known vendors, including Sprint, FedEx, TurboTax, Kabbage, UniFirst, and more. This list is not reflective of all possible partnerships, and NFIB may review or change them at any time. Be sure to check the website for the most up-to-date list.

NFIB Membership Cost

To become part of the NFIB’s purchasing group, you have to join the NFIB. There’s a special online price of $195 per year.

Memberships can be cancelled at any time, and fees will be prorated.

National Federation of Independent Businesses Reviews

There are a few testimonials on the NFIB’s website about the organization, though none of the testimonials touch on the purchasing group at all. Testimonials mention interest in joining the group to help advocate on behalf of small businesses and fight for their rights. Some reviewers refer to being stronger together and having a voice by joining NFIB.

The Better Business Bureau has given the NFIB an A+ rating based on its speedy response to customer complaints.

Group Purchasing Solutions (GPS) is a buying group based in San Jose, CA. It was founded in 2008. Unlike other purchasing groups which are dedicated to particular industries or niches, GPS accepts all types of members. There are no industry or location requirements to join.

How does the group work?

There aren’t too many details on GPS’ website about how the group functions. What information there is seems pretty straightforward: members receive discounts on services and products. Like most group purchasing organizations, the power lies in the ability of the group to secure better pricing due to combined member spend. GPS pre-negotiates discounts and pricing agreements on behalf of group members, so members enjoy the savings without having to do the additional leg work of trying to secure better pricing on their own.

What is its focus?

The sole focus of the group is to save members money on mission-critical goods and services for their businesses, helping streamline purchasing and eliminating the need for yearly RFPs. The group strives to establish relationships with vendors in multiple categories of products and services and creates direct pricing agreements for its members.

How does it work in terms of the purchasing process?

GPS’ website doesn’t offer very much information on how the purchasing process works, although it appears there’s an online portal for members to sign into and view offers. The vendor bears responsibility for shipping you the goods or distributing the services. The group’s website also claims that you aren’t required to use specific vendors, and that most vendors don’t impose minimums on spending.

How does the buying group choose vendors?

GPS requires vendors to quote based on the group’s buying potential. Vendors wishing to sell to GPS members can submit requests on its website. GPS has a few requirements for vendors: they must have national sales and delivery reach, a web presence so members can access product or service information, and they should be accountable to customers (though the website doesn’t specify what GPS expects in terms of accountability).

Current Suppliers

Group Purchase Solutions lists suppliers in 4 general categories, including business services, facility products, IT, and marketing. The group also maintains a list of suppliers, which currently includes:

Constant Contact

Airgas

OfficeMax

First Data

Verizon

ADP

YRC Freight

…And more.

How much does it cost to join?

There is a cost to join GPS, but the group doesn’t disclose that information to the public. There is also no cancellation fee, and you can cancel at any time.

Group Purchasing Solutions Reviews

This is where we come up short. There aren’t any testimonials on GPS’ website. Furthermore, the Better Business Bureau doesn’t have a profile on the group, nor are there any other reviews anywhere else online.

If you’ve used GPS, let us know! We’d love to hear about your experience in the comments section, below.

Introduction to Trustwave

When it comes to fraud protection for your business, should you put your trust in Trustwave? An enormous number of companies rely on it. Trustwave, based in Chicago, has a global reach with clients in nearly 100 countries. Currently, more than 3 million businesses use Trustwave’s “Trustkeeper” compliance and security platform and related apps. The company’s 2014 revenue in the U.S. alone was $216 million. In 2015, Singapore Telecommunications Ltd – Singtel – acquired a 98 percent stake in Trustwave for a reported $810 million.

PCI Compliance

Any business that accepts credit cards must be PCI compliant. With new Visa PCI compliance regulations becoming mandatory for Level 4 businesses in January, small business owners are scrambling to become compliant. It’s a confusing situation for many business people, and Trustwave offers services for businesses of every size, covering all compliance-related issues.

Small businesses are soft targets for hackers, since they often do not have sophisticated security protection. Trustwave notes that 71 percent of all cybercrimes occur at businesses with fewer than 100 employees. A more chilling statistic – 80 percent of small businesses hit by a cyberattacks go out of business within 18 months. Trustwave offers the PCI Manager with the SMB Security Toolkit, a compliance and security package in one, with 13 “integrated security solutions.” Trustwave touts the package as affordable, estimating all the solutions would cost at least seven times more if purchased separately from another vendor. The package includes training and a helpdesk available via phone, email, or online chat. There’s the Trustwave “Intelligent PCI Wizard,” which guides users through the steps needed for their particular enterprises. The kit is designed for businesses without a dedicated IT staff. Once a business becomes compliant via Trustwave, the system ensures it stays compliant.

Payment Services

Payment services are vulnerable to fraud from various angles. Trustwave notes that it’s not the garden variety credit or debit card thief that businesses must primarily worry about, but sophisticated, international crime rings. It’s a game of cat and mouse, as cybersecurity professionals continually develop new methods to protect information and crime syndicates keep working to breach online security and steal data. These syndicates operate on a business plan, and it consists of finding the least expensive and easiest way to obtain high-yielding payment information.

The Trustwave solution to this ongoing dilemma is holistic – every step in the payment chain is constantly monitored and protected. These steps include:

Penetration testing – data security teams attempt to penetrate a company’s network. Basically, these teams are trying to see how fast and how easily such penetration is possible. They work in much the same way as cybercriminals, but for ethical reasons. Penetration testing differs from the similar – but less effective – vulnerability scanning. The latter, also offered by Trustwave, is conducted by machines. More thorough penetration testing uses expert human knowledge to duplicate a hacker’s experience and discover a system’s weak points. Once a network’s vulnerabilities are recognized, Trustwave can devise solutions. Penetration testing is generally conducted several times a year.

Vulnerability scanning – once a company’s vulnerabilities are identified, its risks are prioritized. The company can run scans on a regular basis throughout the day or whenever needed. Trustwave features the Vulnerability Manager, which it claims reduces false positives and scans more rapidly than competing software. The end result- is accurate findings, delivered quickly.

Incident response – when a breach is detected, Trustwave immediately springs into action. It identifies the source of the breach – from phishing schemes to direct hacks – and isolates affected systems. The goal is minimal undesirable consequences for the company and prompt development of a removal/remediation plan. Trustwave trains company employees to recognize possible compromises and runs drills enabling staff preparation for various scenarios. These tests are custom-designed for each client.

Praise for Trustwave

In 2014, Forrester Research, Inc. named Trustwave a “leader in the Managed Security Service Provider marketplace.” The independent research form noted Trustwave received “the highest scores possible for services delivery capability, service-level agreements (SLAs), continuous monitoring capability, 2013 North American clients, as well as client and revenue growth for 2013.” Thirteen vendors were assessed by Forrester Research, Inc.

In 2016, industry analyst firm IDC named Trustwave as a leader in its “U.S. Emerging Managed Security Services 2016 Vendor Assessment,” pointing out their partnerships with leading international telecommunications companies, “comprehensive portfolio covering basic and advanced services,” and excellent customer feedback.

Card Not Present named Trustwave “the best PCI compliance provider” at its 2016 expo in Orlando, Florida.

The Reviews Are In

Online reviews – admittedly subjective opinions – fall into two distinct camps. Large and medium-sized businesses overwhelmingly praise Trustwave, pouring on the superlatives. That’s not the case with small-business owners, who write that the company doesn’t pay attention to their concerns. It’s possible that larger enterprises have more technological expertise on staff, with a better understanding of the process. Small business owners may require more hand-holding than Trustwave is able to provide. That’s just a supposition based on reviews, so it’s important not to read too much into it.

As for employee reviews, they’re overwhelmingly positive, with many workers remarking on the high caliber of the Trustwave team. Several reviewers used the term “best and the brightest” to describe Trustwave personnel.

If you’ve used Trustwave at your business, let us know about your experience in the comments section, below.

Industries

Trustwave provides services to all types of industries, from international corporations to local restaurants. The company notes that individual industries face unique challenges and compliance issues. While Trustwave provides payment services to all types of entities, it offers specialized security for the following:

Education

Financial services

Government

Health care

Hotels

Restaurants

Retailers

Trustwave and the Target Breach

A hack directed against retailer Target in late 2013 stole debit and credit data from approximately 40 million customers. In 2014, two banks filed suit against Trustwave, alleging the company had provided security services for Target. Although the suit made headlines, it was later dropped because Trustwave did not provide services for Target.

Making a Decision

Choosing the right provider for security and compliance purposes is one of the most important decisions your business can make. One compromise might spell ruin for your company. Trustwave certainly has a global network, a good reputation and a long track record. It’s possible your bank or processor may already use Trustwave’s services, in which case they can enroll you as a partner. Ask your bank or processor about the tools they use for fraud prevention, and why they rely on a particular provider. Security is as important to them as is to you, and this information can help guide your decision.

_____A graduate of New York University, Jane Meggitt is a former staff writer for a major New Jersey newspaper chain. Her work has appeared in dozens of publications, including LegalZoom, USA Today, Zack’s and The Motley Fool.

]]>https://www.cardfellow.com/trustwave-review/feed/0Things to Consider When Choosing a Chargeback Management Companyhttps://www.cardfellow.com/choosing-chargeback-management-company/
https://www.cardfellow.com/choosing-chargeback-management-company/#respondFri, 18 Nov 2016 20:47:48 +0000https://www.cardfellow.com/?p=8261As ecommerce evolves and new threats emerge, one conversation in particular has started to dominate payment processing discussions: should a business outsource chargeback management responsibilities or manage issues in-house?

If you are faced with this conundrum, there are several things you’ll want to consider. The 6 main areas to think about are:

Do you need professional help?

What will a chargback management company do?

What kind of results can you expect?

How will chargeback management software integrate with your current platforms?

What is and isn’t included?

What will it cost?

If you need a quick refresher on chargebacks or are totally new to the process, you might want to check out our Business’ Guide to Chargebacks before proceeding.

1. Do you need professional help?

Technically, all businesses are capable of managing chargebacks in-house. Card networks provide regulations regarding payment processing procedures—including chargeback management. In theory, you have all the information you need prevent and dispute chargebacks.

But, just because the information needed is readily available doesn’t mean it is easy to implement or that adhering to those guidelines alone will generate significant results.

Ask yourself these questions:

Does your business have the capacity to analyze and process thousands of pages of technical, complex industry regulations? Will someone be able to interpret these regulations and devise best practices that are customized for your exact business? Can you monitor the adherence of regulations to ensure disputes will be compliant with industry standards? Is someone willing to monitor all card networks to detect minor, yet significant, updates that are made on a regular basis and implement necessary changes in a timely fashion?

Issuing banks use humans instead of full automation to process chargebacks. Therefore, not all chargeback procedures are mandated by published regulations; some are governed by personal preferences. Are you capable of establishing and maintaining the necessary industry relations to accumulate this undisclosed information?

Can you design an internal system to amass the information needed to create compliant disputes? Do you have the required compelling evidence for each transaction in accordance with every reason code? Can you access this information quickly and efficiently so you can abide by extremely short representment deadlines?

Are you confident in your ability to create chargeback disputes that are professional, compliant, and void of errors? Do you know all the ways in which innocent mismanagement issues could actually increase chargebacks and revenue loss?

Can you identify the source of each chargeback so you know which cases can be disputed with representment? Are you sure you won’t dispute something inappropriate and damage long-term client retention? Alternately, are you needlessly forfeiting your rights and winnable revenue?

Are you monitoring the hundreds of potential issues pertaining to internal policies and operations that could inadvertently be triggering chargebacks? Are you able to objectively and intelligently audit your current practices to identify unintentional errors and oversights that are causing chargebacks?

Are you capable of managing your current volume of sales and chargebacks? Are you prepared for unexpected influxes? Or are resources already stretched too thin?

Ultimately, all businesses can benefit from professional assistance, whether that is a fully outsourced solution or simple, on-demand services. The key is to identify areas of weakness in your current operation and then outsource those responsibilities to yield more significant results. Focus on sustainable ROI, rather than quick-fixes that won’t last.

2. What will a chargeback management company do?

All chargeback management companies are different, but the best solution will address both sides of the chargeback issue: prevention and representment (disputing chargebacks to recover revenue).

When evaluating options, chargeback prevention is a key area to consider. Some chargeback management companies offer chargeback alerts as the only form of prevention. Chargeback alerts are helpful and serve an important function; however, they should be just one component in a comprehensive approach—not the definitive solution.

Instead, look for something more inclusive. To prevent chargebacks, you’ll need to know what caused them. Therefore, the best prevention solution is the one that identifies and fixes the underlying problem. To do that, you’ll need advanced technologies, professional advice, or, ideally, a combination of the two.

When evaluating representment services, proceed with caution. This advice may seem cliché, but remember, you get what you pay for. And, as Bill Gates said, automation applied to an efficient operation enhances the efficiency; automation applied to an inefficient operation enhances the inefficiency.

In the world of chargeback management, automated representments are a popular approach. As is the case with anything, streamlining processes is often cost efficient. However, technology isn’t without its shortcomings. Trusting your business’s bottom line and reputation to one-size-fits-all solutions with no human oversight can be dangerous.

3. What kind of results can you expect?

Since there are two aspects of chargeback management, you’ll want to evaluate the reduction of chargeback issuances and the chargeback dispute win rate.

Most chargeback management companies will advertise that chargeback alerts will reduce instances by 25-40%. What they might not tell you is these higher rates are only achievable if you meticulously manage every element of the alert process. Some alerts will still turn into chargebacks, so prompt and effective responses are essential. Also, monitoring is required to ensure costs aren’t doubled when alerts turn into chargebacks. If multiple networks are used, multiple platforms will need to be consulted.

Who will manage all that? It is likely more than a business can effectively handle. The best service provider will help you mange alerts so you do see significant results without additional expenses.

You’ll also want to take promises regarding representment with a grain of salt. Many companies seem to gauge success by win rates, but those claims don’t always paint the full picture.

What to Watch Out For

Here’s what you should be asking about and looking for when considering a company.

Does the win rate take second chargebacks into consideration? Is this a net count? If the quote doesn’t include second chargebacks, remember a significant portion of your wins could be reversed. The most effective solution will come with a high net win rate and the ability to reduce the risk of second chargebacks.

Will all chargebacks be disputed? If you aren’t disputing all chargebacks and those excluded cases aren’t include in the count, the win rate doesn’t depict what’s really possible. For example, if the company claims to win 40% of disputes, but doesn’t dispute reason codes X, Y, and Z, they are inflating their success by excluding the difficult-to-win situations that could drop their average to a lower number—while also leaving revenue on the table.

Does the company offer a win rate guarantee? Every chargeback management company likely offers a guarantee of some sort for their product offerings, and many will quote generic win rate averages. However, calculating an average rate of success doesn’t adequately depict what your unique business can expect. And, the most relevant guarantee is a win rate While it’s true that every business is different and varying factors could impact outcomes, the company should be able to accurately evaluate their potential for success when it comes to managing your individual challenges. This shows the company’s willingness to go above and beyond to secure the best results possible. Without a win rate guarantee, companies imply they aren’t confident in their ability to identify friendly fraud or adequately keep pace with emerging threats. To date, Chargebacks911 is the only company on the market that advertises this sort of performance guarantee.

That being said, win rates need to be evaluated in context. A high win rate shouldn’t automatically be considered a scam. If you’re experiencing high levels of friendly fraud, the service provider should be able to win a significant portion of chargebacks—that isn’t an overinflated promise. In other situations, it might be possible to prevent more chargebacks, meaning there won’t be many left to dispute.

There are other KPIs that should be evaluated too, like a reduction in issuer declines, client retention rates, increased conversions, etc.

Results must be transparent. An essential component of a quality solution—one that should be a determining factor—is pertinent, transparent reporting. In this situation, quality beats out quantity. Hundreds of different reports aren’t helpful if you can’t glean any valuable information from them.

It is imperative to mitigate threats before they become unmanageable liabilities, so reporting must be done in real-time.

4. How will chargeback management software integrate with your current platforms?

The complexity and timeline of integration will depend on how well connected the chargeback management service provider is to other industry entities.

If the service provider needs to create custom integrations for your CRM, processor, or gateway, the process could be quite lengthy. In unfortunate situations, the service provider won’t be able or willing to integrate with the platforms you currently use and force you to use others. Or, they might claim you’ll get better results with one platform versus another.

The best chargeback management service is completely agnostic and heavily integrated with other merchant service providers. You should be up and running without delay.

The chargeback management company shouldn’t be able to access your lead lists or other sensitive customer information. However, the company should be prepared to communicate with processors, gateways, etc. for integration and ongoing management efforts.

When evaluating options, don’t forget to inquire about integration fees.

5. What is and isn’t included?

Some service providers are more robust than others. Your individual needs will help you decide how extensive the product offering needs to be.

International Processing

eCommerce has introduced a global marketplace. If you are taking advantage of international selling opportunities, or will in the future, you need a service provider that is capable of scaling with you and addressing the unique threats originating from different geographical regions. Look for a service provider with an international presence.

You also can’t be hindered by a service provider’s inability to manage transactions in certain currencies. Fortunately, there are chargeback management companies who are capable of working with any currency.

For example, if you sell products on a subscription billing model, you’ll need a service provider who’s willing to challenge “recurring transaction” chargebacks.

Be sure to inquire which chargebacks will be disputed and what limitations will be enforced. Ideally, you’ll be able to recover revenue for all reason codes.

Comprehensive Assistance

Check to see what ‘extras’ the service provider offers. Some might also sell fraud filters, for example. Or, the company might provide a call center.

Sometimes it is beneficial to receive extra assistance, but other times, it is too restrictive to be forced into a situation that isn’t a good fit for your company.

Usually, it’s best if the chargeback management company can help you analyze and optimize your current efforts—make your current tools and processes more efficient. Ultimately, the goal of risk mitigation is to generate sustainable profitability—and one-size-fits-all solutions don’t usually accomplish that as well as a personalized approach.

Service Levels

Again, will you be able to pick a customized management solution that’s best for your individual needs or will you have to accept the generic services that are provided to everyone else?

Depending on your in-house capabilities, you might be interested in managing certain responsibilities. If that’s the case, you ought to be able to receive assistance just in the areas where you need it most. On the other hand, if you want to outsource the entire process, you shouldn’t be expected to complete tasks that you’re ill-equipped to manage.

6. What will it cost?

There are a variety of ways a chargeback management company might assess fees.

A monthly fee may be assessed.

A paid-on-performance option may be used.

Each individual action may incur a fee, like a per-alert fee or a per-representment charge.

A per-user option might be available for software.

Some companies offer an “upgrade” for things like consultations, while others provide those services for free.

If price is based on transaction volume, carefully consider future growth potential.

A set-up or integration fee may be required, as well as a cancelation fee.

Some companies suggest long-term contracts, while others allow you to cancel with just a few days’ notice.

In the end, the best payment plan is a dynamic model that fits your individual needs.

Do You Need Chargeback Management Help?

If you are interested in learning more about a chargeback management company, you can request a demo. A well-educated sales representative will be able to answer your questions, address you concerns, and articulate what the company is capable of.

_____
Monica Eaton-Cardone is the COO of Chargebacks911. As a former merchant herself, who has personally tried certain solutions available on the market today, Monica has a unique understanding of the challenges merchants face on a daily basis and the solutions they need to achieve success. She created Chargebacks911 in response to the industry’s lack of a dynamic, customizable solution that addresses the actual source of the chargeback problem. Since the business’s launch in 2011, Chargebacks911 has grown to more than 350 employees managing 200 million transactions each month. Chargebacks911 is distinguished as one of the fastest growing companies in America and was recently voted Customer’s Choice Best Chargeback Management Program.
Connect with Monica on Twitter or LinkedIn.

Innovatix is a purchasing group for healthcare service providers, K-12 schools, and businesses. It was founded in 1993 as a purchasing group for the Greater New York Hospital Association and changed its name to Innovatix in 1998. This introduction video from the group explains further:

The group partnered with Premier, one of the largest medical group purchasing organizations in the industry, in 2002. In 2015, Innovatix launched its procurement services for businesses.

How does this group work?

By joining Innovatix, you can access the group’s purchasing power (it boasts over 900 suppliers and over 2,000 contracts). Innovatix also offers regional field managers and a customer service team that helps you find better deals as well as auditing teams to ensure you’re getting the deals you’ve signed up for. Certain vendors offer members rebates, which Innovatix pays out.

Additionally, Innovatix offers an accreditation advisory service that helps pharmacies with the accreditation process.

What is its focus?

Innovatix’s focus is saving money for its customers, although there’s also a government affairs program so the group can advocate on behalf of its members in Washington. Originally, Innovatix worked with healthcare providers and pharmacies, though over the years the group has broadened its reach to the business world and K-12 schools.

How does it work in terms of the purchasing process?

When you join Innovatix, you browse products or services through the group’s online portal. You place the order with Innovatix, and the vendors fill it. The vendors then distribute the product or services.

How does the buying group choose vendors?

To become a supplier for Innovatix, vendors must apply. The website emphasizes that all vendors can submit requests. The only stipulation is that the vendor has to be “duly formed and in good standing under the laws of the relevant jurisdiction.” Moreover, if the vendor requires a license to sell its products or services, it must have that license to be considered by Innovatix.

There are two categories of vendors: pharmacy and business. Vendors can submit a proposal to join the pharmacy portfolio at any time. Once every 3 years, Innovatix invites pharmacy vendors to take part in a bidding process for specific items. As one of Premier’s affiliates, Innovatix offers the purchasing group giant’s medical and food directories. To become a supplier in one of these categories, vendors must follow Premier’s contracting guidelines. When Innovatix signs contracts with such suppliers, it posts that information on its “Current Request for Proposals” webpage.

How much does it cost to join?

It doesn’t cost anything for you to join Innovatix, nor is there a minimum buying requirement.

Innovatix Reviews

On Innovatix’s website, there are a few testimonials from current members. The reviews say that the group has increased the member’s purchasing power, lowered costs, and built relationships. There is a profile on the Better Business Bureau’s website, although there has never been a complaint against Innovatix.

PerkHub (formerly known as Rewardli, but with a website that still uses both names) is a network of white-label perks and buying solutions. The company has an online portal into which buyers log in and make purchases. The San Francisco-based startup has a small core team of employees. However, its size may belie its impact. Many investors think PerkHub has promise, and the company is a graduate of the famed 500 Startups accelerator. It boasts clients that include Google and American Airlines.

How does PerkHub work?

Unfortunately, there isn’t a great deal of information on the site as to how it works. It would appear that you simply sign up and then begin making purchases.

List above doesn’t include all perks. Exact details and offers accurate as of November 2016, but subject to change.

The PerkHub website (different than the Rewardli site) offers slightly more information. The company mentions easy set up and integration of perk programs, mobile readiness, an administrative dashboard, and virtual currency support, including for bitcoin.

What is its focus?

PerkHub/Rewardli has two aims: to give small businesses better purchasing power and to offer a rewards program to employees of member firms. It appeals to customers from many industries and allows vendors from many industries to provide offers.

How does it work in terms of the purchasing process?

The website doesn’t provide much information about how customers make purchases. It appears that they simply sign in and can utilize a dashboard. However, there’s no information on whether there are any minimums or any other requirements.

How does the buying group choose vendors?

Vendors pitch their offers to Rewardli’s staff through the website. If Rewardli likes the pitch, the offer will appear on the portal, and be disseminated to members through email.

Also, members can request that PerkHub/Rewardli reach out to specific vendors to negotiate deals. Rewardli puts up the request for a vote. If enough members vote on it, the company will set the wheels in motion.

How much does it cost to join?

It’s free to join Rewardli.

PerkHub/Rewardli Reviews

The user testimonials on Rewardli’s site are mainly about customers that use the employee perks program. There’s one case study about an organization that uses the buying group, although it’s objective and appears factual – there’s no praise for Rewardli or a comment about how it benefits the customer.

There’s one review of Rewardli online from a vendor who submitted a pitch and wasn’t impressed with the customer service he received. That being said, that’s the only complaint about the company that appears online.

Do you use PerkHub/Rewardli? Let us know what you think in the comments!

With so much cash changing hands this holiday season, one can easily assume this means more profits for the average business owner. However, for some businesses, this will not be the case. Holiday deals, increased staff, and a host of other factors all contribute to a hefty sum – a sum that a lot of small businesses struggle with every year.

Below are a few ways small business owners can save money this holiday season while maintaining the holiday cheer.

Keep Promotions Easy

You’ll be surprised by how easy it is to leave an impression on your customers. Most do not need (or expect) grand gestures and promotions. Often the smaller, more thoughtful offers are what keep people coming back. If you have an online component to your business, including handwritten, personalized thank you notes with your shipments makes your customers feel appreciated. Kick it up a notch by including a small offer to get people back to your website, like a 10% off discount code or free gift with next purchase.

If you are a brick-and-mortar business, offering a gift-wrapping service in-store relieves stress on your customers and shows that you have their needs in mind. Partnering with a local non-profit and accepting donations for the service will bring a sense of community to your efforts.

Gain a Better Understanding of Your Expenses

It is easy to fall into habits when it comes to monthly bills. After a while, you come to expect certain charges for certain things that help keep your company afloat. Remember to always be critical of these charges, and continuously keep an eye on where your money is going.

At the start of your holiday season, it is a good idea to do a quick audit of your expenses. A lot of the time, there are savings hiding in plain sight that you simply aren’t taking advantage of. One example is with your credit card processing. The majority of processing companies out there follow the same pricing model – a percentage markup on each transaction run plus additional fees for statements and other services. Other companies, like Fattmerchant, offer subscription-based credit card processing, which can mean big savings for many companies. As a business owner, it pays to do your research to see if there are savings out there for you. CardFellow has made it easy to compare pricing using a simple, private quote comparison tool.

If you’ve already used CardFellow to find the most competitive processing solution, there are still places you can save money. Automating administrative tasks, streamlining customer service, or joining a group purchasing organization are a few options.

Pay Attention to Utilities

This might sound obvious, but especially if you live in a colder climate, pay attention to your heating costs. Often, if there is a long line or crowded store, the front door can accidentally be left open for long periods of time. Make sure you put up a kind reminder to patrons to close the door behind them, or ensure that automatic-closing doors are working properly.

Also keep in mind that if your store is more crowded than usual during the holiday season, you may not need to turn your heat up as high as you usually do. The more crowded the store, the warmer it naturally becomes. Make sure your patrons are comfortable while they browse while saving money at the same time.

Organize a Secret Santa for Employees

Many businesses feel that it’s important around the holidays to do something special for employees. They are busy as well, so making an effort to show your appreciation increases morale and improves the mood at this hectic time. This can get costly, so a good way to save money without being a Scrooge is to organize a Secret Santa. Include yourself in the pool, and that way every employee is just buying one gift – saving yourself and your employees time and money while bringing cheer!

In addition to saving money, be sure to put strategies in place to capitalize on holiday spending. One study suggests that boutiques, restaurants, clothing stores, and toy stores can expect the lion’s share of shoppers. If that’s you, make plans now for how to capture more of those sales.

All in all, the holiday season should be a time of celebration and profits for business owners – not headaches! By taking these simple steps, you could be seeing savings and sales this holiday season like never before.

_____Julia Olson is the Content Strategist at Fattmerchant, a subscription based merchant services provider. She works to educate readers about their merchant services, and loves spreading the word about the industry-changing Fattmerchant model.